1 FY12 Financial Results Insight ACURA ILX (North America) Honda Motor Co., Ltd. April 27, 2012
1
FY12 Financial ResultsInsight
ACURA ILX(North America)
Honda Motor Co., Ltd.April 27, 2012
2
FY12 Financial Results & FY13 Financial Forecasts
Fumihiko IkeSenior Managing Officer and DirectorChief Financial Officer
- FY12 Consolidated Financial Results - FY13 Financial Forecasts - Dividend
Kohei TakeuchiOperating Officer, General Manager of Accounting Division
- FY12 Consolidated Financial Results Net Sales and Other Operating RevenueChange in Income before Income TaxesBusiness Segment InformationGeographical InformationChange in Equity in Income of AffiliatesConsolidated Capital Expenditures
- FY13 Financial Forecasts
3
(千台)ChangeFY12FY11
Unit (Sales)
+ 15.1%2,0101,746 Power Products
+ 14.9%988860 Automobiles
+ 17.8%3,4562,934 Motorcycles
4Q Results (Three Months)
+ 15.0039.7224.72EPS attributable toHonda Motor Co., Ltd.(Yen)
ChangeFY12FY11
4Q Results (Three Months)Financial results
+ 33.1%33.2 25.0 Equity in income of affiliates
+ 60.7%71.5 44.5 Net income attributable to Honda Motor Co., Ltd.
+ 21.5%93.0 76.6 Income before income taxes
+ 142.3%111.9 46.2 Operating income
+ 8.7%2,405.0 2,213.0 Net sales & other operating revenue
Yen up by9 yen104 113Euro
Yen up by2 yen80 82US Dollar
Outline of FY12 4th Quarter Financial Results (Consolidated)Financial Summary
Financial Highlights
(thousand)
Yen (billion)
Note : Shares which are based on calculation of EPS
approx.1,802,302,000 shares
(weighted average number of shares outstanding )
approx.1,802,302,000 shares
(weighted average number of shares outstanding )
Average Rates (Yen)
A swift recovery in auto production after the earthquake and flood, along with new modelmomentum mainly in Japan and N.A., led to a bigrise in sales.A new motorcycle unit sales record for a quarterand earnings from stable financial services business led to much higher income in eachcategory.
Unit Sales:Motorcycle:Increased in Asia and Other regions including South AmericaRecord high for a quartre
Automobile:Increased in North America and JapanDecreased mainly in Asia due to Thailand flood
Power Products:Increased mainly in North America and Asia
Net sales & other operating revenue-Increased in motorcycle and automobile businesses-Negative currency translation effects
Operating income-Increased R&D expenses-Negative currency effects due to appreciation of the Japanese yen
-Positive change in sales volume and model mix-Decreased SG&A expenses
4
ChangeFY12FY11
+ 5.6%5,8195,509
- 10.7%3,1373,512
+ 9.7%12,55911,445
Twelve Months
- 178.33117.34295.67
ChangeFY12FY11
Twelve Months
- 28.2%100.4 139.7
- 60.4%211.4 534.0
- 59.2%257.4 630.5
- 59.4%231.3 569.7
- 11.1%7,948.0 8,936.8
Yen up by6 yen108 114
Yen up by7 yen79 86
(千台)ChangeFY12FY11
Unit (Sales)
+ 15.1%2,0101,746 Power Products
+ 14.9%988860 Automobiles
+ 17.8%3,4562,934 Motorcycles
4Q Results (Three Months)
+ 15.0039.7224.72EPS attributable toHonda Motor Co., Ltd.(Yen)
ChangeFY12FY11
4Q Results (Three Months)Financial results
+ 33.1%33.2 25.0 Equity in income of affiliates
+ 60.7%71.5 44.5 Net income attributable to Honda Motor Co., Ltd.
+ 21.5%93.0 76.6 Income before income taxes
+ 142.3%111.9 46.2 Operating income
+ 8.7%2,405.0 2,213.0 Net sales & other operating revenue
Yen up by9 yen104 113Euro
Yen up by2 yen80 82US Dollar
(thousand)
Yen (billion)
Note : Shares which are based on calculation of EPS
approx.1,802,302,000 shares
(weighted average number of shares outstanding )
approx.1,802,302,000 shares
(weighted average number of shares outstanding )
Average Rates (Yen)
approx.1,806,360,000 shares
(weighted average number of shares outstanding )
approx.1,802,300,000 shares
(weighted average number of shares outstanding )
Outline of FY12 Financial Results (Consolidated)
5
Change
+ 258.5
+ 19.5
+ 377.5
+ 388.6
+ 2,351.9
amount
470.0
120.0
635.0
620.0
10,300.0
FY13Forecasts
+ 19.5%100.4Equity in income of affiliates
+ 122.2%
+ 146.7%
+ 168.0%
+ 29.6%
%
211.4 Net income attributable to Honda Motor Co., Ltd.
257.4Income before income taxes
231.3Operating income
7,948.0Net sales & other operating revenue
FY12Results
+ 143.44260.78 117.34EPS attributable toHonda Motor Co., Ltd. (Yen)
105
80
Yen up by 3 yen
Yen down by 1 yen
108Euro
79 US Dollar
FY13 Financial Forecasts (Consolidated)Yen (billion)
Note : Shares which are based on calculation of EPS
approx.1,802,300,000 shares(weighted average number
of shares outstanding )
approx.1,802,299,559 shares
Average Rates (Yen)
(weighted average number of shares outstanding )
6
+ 93.7
+ 149.6
+ 186.7
+ 579.9
amount
ChangeFY13Forecasts
FY12Results
46.2
40.3
- 136.7
2,740.0
%
+ 202.5%
+ 370.4%
-
+ 21.2%
140.0Net income
190.0Ordinary income
50.0Operating income(loss)
3,320.0Net sales
Yen up by 3 yen
Yen down by 1 yen
108
79
105
80
Euro
US Dollar
FY12 Financial Results and FY13 Financial Forecasts (Unconsolidated)
Yen (billion)
Average Rates (Yen)
7
Increase/Decrease from
FY11 Results
( + 6 )
( ± 0 )
± 0
+ 3
+ 3
54
15
15
12
12
FY11Results
( + 4 )
( + 4 )( 19 ) ( 15 )4th quarter End
( + 4 )( 19 )153rd quarter End
( 19 )151st quarter End ( + 4 )
( 19 )152nd quarter End
Increase/Decrease from FY12
( + 16 )( 60 )
FY12Results &Projection
( 76 )Fiscal Year
FY13Projection
Dividend
(Yen)
Dividend per share
8
FY12 Financial Results & FY13 Financial Forecasts
Fumihiko IkeSenior Managing Officer and DirectorChief Financial Officer
- FY12 Consolidated Financial Results - FY13 Financial Forecasts - Dividend
Kohei TakeuchiOperating Officer, General Manager of Accounting Division
- FY12 Consolidated Financial Results Net Sales and Other Operating RevenueChange in Income before Income TaxesBusiness Segment InformationGeographical InformationChange in Equity in Income of AffiliatesConsolidated Capital Expenditures
- FY13 Financial Forecasts
9
( + 12.3 %) ( - 10.3 %)( - 1.7%)
- 988.7 ( - 11.1 %)
(+ 11.2 %)
(+ 15.9 %) (- 0.7 %) ( - 5.8 %)
+ 191.9 ( + 8.7 %)4Q
Net Sales byBusiness Segment FY12FY11
2,213.0
80.0
134.5
1,645.3
353.1
72.5Power Product & Other Businesses
2,405.0Total
129.0Financial Services Business
1,844.9Automobile Business
358.5Motorcycle Business
7986US Dollar113 109Euro
7982 US Dollar113 104 Euro
Twelve monthsNet Sales byBusiness Segment FY12FY11
8,936.8
292.6
561.8
6.794.0
1,288.1
277.1Power Product & Other Businesses
7,948.0Total
516.1Financial Services Business
5,805.9Automobile Business
1,348.8Motorcycle Business
Excluding currency translation effects; + 294.8 (+ 13.3 %)
Excluding currency translation effects; - 555.6 ( - 6.2 %)
2,213.0+ 39.5
+ 260.8 - 0.9 - 4.6- 102.9
2,405.0
8,936.8+ 158.6 - 702.7
- 6.7 - 4.8- 433.0 7,948.0( - 1.2 %)
Net Sales and Other Operating Revenue4th Quarter (Three months)
Twelve Months
FY11 4Q FY12 4Q
MotorcycleBusiness
AutomobileBusiness
Financial ServicesBusiness
Power Product &
Other BusinessesCurrency Effects
Yen (billion)
Yen (billion)
Market average rates
MotorcycleBusiness Automobile
BusinessFinancial Services
BusinessPower Product
& Other Businesses
Currency Effects
FY11Twelve Months
FY12Twelve Months
Market average rates
10
Income before Income taxes + 16.4
76.693.0
+ 62.7
+ 40.4
+ 14.5 - 23.6
- 28.2
- 6.6 - 42.6
Operating Income + 65.7Other Income & Expenses
- 49.3
Change in Income before Income Taxes <FY12 4th Quarter>
Revenue, model mix,
etc.
Cost Reduction, etc.
Decrease in SG&A Increase in R&D
Currency EffectsUnrealized gains and
losses related toderivative instruments
(Exhibit 2)
Others
FY11 4Q
OperatingIncome
46.2
*Please refer to Exhibit 1 regarding currency effectsFY12 4Q
OperatingIncome111.9
<Increase Factors>-Increase in unit sales and model mix in automobile business,
- Decreased sales incentives, etc.
<Increase Factors>- Decreased fixed cost per unit due to increased production
- Cost reduction effort, etc.<Decrease Factors>- Increased raw material cost, etc.
- Currency effect due to difference between average ratesand transaction rates: - 8.7
- Others - 33.9
Yen (billion)
11
Income before Income taxes - 373.1
630.5
257.4
- 155.1
- 92.8+ 55.8 - 32.2
- 114.0
- 5.9 - 28.7
Operating Income - 338.4Other Income & Expenses
- 34.7
Change in Income before Income Taxes <FY12 Twelve Months >Yen
(billion)
FY11Twelve Months
OperatingIncome
569.7
*Please refer to Exhibit 1 regarding currency effects
FY12Twelve Months
OperatingIncome231.3
Revenue, model mix,
etc.
Cost Reduction, etc. Decrease in SG&A Increase in R&D
Currency Effects Unrealized gains andlosses related to
derivative instruments (Exhibit 2)
Others
<Increase Factors>-Decreased sales incentives, etc.<Decrease Factors>-Decrease in unit sales and model mix in automobile business, etc.
<Increase Factors>- Cost reduction effort, etc.<Decrease Factors>- Increased fixed cost per unit due to decreased production
- Increased raw material cost, etc.
<Increase Factors>- Decreased quality-related expenses, etc.
- Currency effect due to difference between average ratesand transaction rates: - 18.0
- Others - 10.7
12
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
54
- Increased sales of CG150FAN, BIZ125 and CBR300R in Brazil- Increased sales of Wave and CG150 in Argentina+ 74550Other
Regions
3,456
2,741
58
53
Major increase / decrease factorsChange from FY11 4QFY12 4Q
- Positive impact of the introduction of New700cc lineup and VISION- Decreased sales of SH series scooters due to economic slowdown in
Southern European countries0Europe
- Increased sales of Activa and Shine in India- Positive impact of the introduction of VISION and increased sales of
Air Blade and Wave series in Vietnam- Positive impact of the introduction of Click 125i and increased sales of
Wave110-i in Thailand
+ 431Asia
+ 522Total
+ 15
+ 2- Positive impact of the introduction of CBR250R- Increased cruiser model sales such as Shadow- Increased sales of scooter models such as Ruckus and PCX, and CBR1000RR
- Increased sales of PCX and GIORNO- Positive impact of the introduction of Dio110 and NC700X
North America
Japan
Approx. 1,780
344
2,374
2,887
64
Approx. 4,667
Approx. 1,950
445
2,153
2,729
41
Approx. 4,679
2,341 39
4252,895
Approx. 1,750
Approx. 4,645
2,310 58
4762,934
Approx. 1,810Approx. 4,744
2,152 62
52
4392,751
Approx. 630Approx. 3,381
6045
4347
4446
3852
46
Approx. 750
496
2,450
3,076
31
Approx. 3,826
4851
Approx. 2,940
2,031
9,910
12,559
198
Approx. 15,499
200220
+ 1,114( + 9.7% )
Approx. 750
546
2,567
3,276
47
Approx. 4,026
5363
+ 522( + 17.8% )
2,74158
5503,456
Approx. 810Approx. 4,266
5354
Approx. 7,290
1,690
9,178
11,445
202185
Approx. 18,735
190
VISION (Vietnam)
Motorcycle Unit Sales (Motorcycles + All-Terrain Vehicles, etc.)
Unit (thousand)
Unit (thousand)
4Q3QFY12FY11FY12FY11
12 Months12 Months1Q 2Q4Q3Q2Q1Q
Unit sales of Honda-brand motorcycle products that are manufactured and sold by overseas affiliates accounted for under the equity method, but do not use any parts supplied by Honda and its subsidiaries
* Unit sales is the total of sales of completed products of Honda and its consolidated subsidiaries and sales of parts to Honda’s affiliates accounted for under the equity method.
AsiaEurope
Other Regions
Japan
NorthAmerica
13
31.3 29.1
44.938.9
25.830.0 32.848.1
138.5 142.69.2%
10.8%
8.5%
10.9%13.6%13.6%
9.6%9.6%9.8%10.6%
0
50
100
150
0%
2%
4%
6%
8%
10%
12%
14%
Includesrevenuerelated to
dissolution of a joint venture
with Hero Honda
( + 1.5% )Currency Effect - 34.1
(Revenue from sales to external customers)
358.54Q
302.53Q
330.31Q
FY12
357.32Q
1,288.112 Months
FY11 FY12FY11
353.14Q
1,348.8301.9312.8320.2NetSales
12 Months3Q2Q1Q
Currency Effect - 97.9(Revenue from sales to
external customers)
(+ 2.9%)
( + 4.7% )
( - 31.7%)
Motorcycle Business Net Sales/Operating Income (Margin)
Yen(billion)
Operating Margin
Operating Income <Increase Factors>-Increased sales volume and model mix, etc<Decrease Factors>-Adverse impact of one-time gain related to licensing agreements in the 4Q last year-Increased SG&A expenses, -Negative currency effect, etc
4Q3QFY12FY12
1Q 2Q 12 MonthsFY11FY11
12 Months4Q3Q2Q1Q
Yen(billion)
14
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
7026153
370
899
145
6124448
368
898
177
85567
26541
364
118
224
- Decreased sales of CITY, CIVIC and FIT in Brazil and Argentina, and decreased sales of CIVIC, CR-V, etc. in Australia due mainly to the decreased supply caused by the flood in Thailand
- 1751Other Regions
988
205
45
463
Major increase / decrease factorsChange from FY11 4QFY12 4Q
- Decreased sales of CIVIC and CR-V in Southern Europe caused by weak consumerconfidence
- Decreased sales of JAZZ and ACCORD in the U.K. and Germany- 11Europe
- Decreased sales of CITY, CIVIC, JAZZ, CR-V, due to supply constraints caused by Thai flood
- Increased sales of parts for production of CR-V, etc. in China - Increased sales of BRIO in India and FREED in Indonesia
- 33Asia
+ 128Total
+ 107
+ 82- Increased sales of CIVIC, ACCORD and ODYSSEY - Positive impact of the introduction of fully remodeled CR-V- Decreased sales of FIT
- Positive impact of the introduction of FIT SHUTTLE / HYBRID, N-BOX, and FREED HYBRID
- Decreased sales of FIT / FIT HYBRID, LIFE, ZEST, etc.
North America
Japan
86068
23856
356
142
54757
13935
22591
+ 128( + 14.9% )
51
24438
366
830
134
874
158
3,137
580
1,323
202
- 375( - 10.7% )
4628640269
772
131
20545463
988
224
48
266
1,008
198
1,458
582
3,512
CR-V (North America)
Automobile Unit Sales
Unit (thousand)
Unit (thousand)
Asia
Europe
Other Regions
Japan
NorthAmerica
4Q3QFY12FY11FY12FY11
12 Months12 Months1Q 2Q4Q3Q2Q1Q
* Unit sales is the total of sales of completed products of Honda and its consolidated subsidiaries and sales of parts to Honda’s affiliates accounted for under the equity method.** Certain sales of automobiles that are financed with residual value type auto loans by our domestic finance subsidiaries are accounted for as operating leases in conformity with
U.S. generally accepted accounting principles. As a result, they are not included in total sales of our automobile segment or in our measure of unit sales.
15
-77.2
45.1-16.9-29.1
-76.2
-39.168.486.3
148.9
264.5
-1.3%
3.9%2.4%
-1.2%-2.2%
-6.5%
-2.4%
4.2%5.0%
8.2%
-200
-100
0
100
200
300
-9%
-6%
-3%
0%
3%
6%
9%
12%
15%
1,851.14Q
1,455.63Q
1,178.81Q
FY12
1,337.12Q
6,802.312 Months
FY11 FY12FY11
1,648.44Q
5,822.71,615.91,723.51,814.4NetSales
12 Months3Q2Q1Q
( + 12.3% ) ( - 14.4% )
Automobile Business Net Sales/Operating Income (Margin)
Yen(billion)
Operating Margin
Operating Income
Currency Effect - 61.2(Revenue from sales to
external customers)
Currency Effect - 285.3(Revenue from sales to external
customers)
<Increase Factors>-Increased sales volume and model mix, -Decreased SG&A expenses etc<Decrease Factors>-Increased R&D expenses, -Negative currency effect, etc
4Q3QFY12FY12
1Q 2Q 12 MonthsFY11FY11
12 Months4Q3Q2Q1Q
Yen(billion)
16
0
1,000
2,000
3,000
4,000
5,000
6,000
105344
230
662
1,440
99
136367
200367
1,166
96
157307
254350
1,157
89
139307
490
706
1,746
104
+ 264
+ 4
+ 87
- 76
+ 264
- 15
Change from FY11 4Q
89
- Increased sales of WB20X / 30X pumps and general-purpose engines made in Thailand for the Middle East and South America due to the commencement of production and delivery of backorders created by the flood in Thailand
143Other Regions
2,010
394
414
970
Major increase / decrease factorsFY12 4Q
- Decreased sales of general-purpose engines used in OEM lawn & garden products, particularly in Italy, and general-purpose engines used in OEM generators caused by the weak economy in Europe
Europe
- Increased sales of GX160 and GX25 / 35 general-purpose engines due to replacement demand after the flood in Thailand
- Increased sales of GK200 engines and generators in India due to pull-forward demand before upcoming tax rise
Asia
Total
- Increased demand for lawn & garden products such as HRR216 / 217 lawnmowers and pressure washers brought on by unseasonably warm winter in Southern part of the U.S.
- Increased sales of generators and lawnmowers due to increased demand for leisure and garden products in Canada
- Decreased sales of GX160 / 390 general-purpose engines used in OEM generators and pumps for export due to appreciated of the Japanese yen
North America
Japan
109399
307
577
1,512
120
+ 264(+ 15.1% )
1,021
68
134289200330
5,819
392
1,121
2,314
1,472
520
+ 310(+ 5.6%)
1,276
115
134390
200437
2,010
89
143394
414
970
537
1,325
2,085
388
5,509
1,174
HRR216(North America)
Power Products Unit Sales Unit
(thousand)
Unit (thousand)
4Q3QFY12FY11FY12FY11
12 Months12 Months1Q 2Q4Q3Q2Q1Q
* Unit sales is the total of sales of completed products of Honda and its consolidated subsidiaries and sales of parts to Honda’s affiliates accounted for under the equity method.
Asia
Europe
Other Regions
Japan
NorthAmerica
17
0.2 -0.1 -4.0-5.5-2.1 -2.0-2.3-2.0-0.5-0.5
-1.4%-1.8%-2.7%-3.2%-0.2%0.4%
-2.8%-2.9%-0.7%-0.7%
-15
-5
5
15
-30%
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
75.64Q
68.0
3Q
73.9
1QFY12
72.1
2Q
307.812 Months
FY11 FY12FY11
83.14Q
289.772.174.577.9NetSales
12 Months3Q2Q1Q
( - 9.0% ) ( - 5.9% )
Power Product & Other Businesses Net Sales/Operating Income (Margin)
Yen(billion)
Operating Margin
Operating Income
Currency Effect - 2.8(Revenue from sales to
external customers)
Currency Effect - 10.6(Revenue from sales to
external customers)
4Q3QFY12FY12
1Q 2Q 12 MonthsFY11FY11
12 Months4Q3Q2Q1Q
<Increase Factors>-Increased sales volume and model mix, etc<Decrease Factors>-Increased SG&A expenses, etc
Yen(billion)
0
18
54.6 47.4 53.642.8
35.939.6
170.0186.2
37.544.6
32.3%27.4% 32.5%29.5%
33.2%
38.7%
32.0%32.9%35.8%
28.8%
0
20
40
60
80
100
120
140
160
180
200
0%
10%
20%
30%
40%
50%
( - 9.2% )
131.2
5,644.34Q
127.5
5,290.53Q
5,169.25,445.75,572.15,427.25,480.35,558.0Total Assets of Finance
Subsidiaries
129.1
2Q
573.4
12 MonthsFY11
138.6
1QFY12 FY12FY11
137.3
4Q
526.5139.2144.2152.5NetSales
12 Months3Q2Q1Q
(- 4.5%) (- 8.2%)
(- 8.7%)
Financial Services Business Total Assets/Net Sales/Operating Income (Margin)
Yen(billion)
Operating Margin
Operating Income
Currency Effect - 4.5(Revenue from sales to
external customers)
Currency Effect - 39.0(Revenue from sales to
external customers)
<Decrease Factors>-Increased allowance for losses on credit,-Negative currency impact, etc
4Q3QFY12FY12
1Q 2Q 12 MonthsFY11FY11
12 Months4Q3Q2Q1Q
Yen(billion)
19
12.5
- 41.2- 35.3
- 45.8- 21.8
14.620.153.1
66.1
- 109.8
-150
-100
-50
0
50
100
( 1.2 % )( - 2.4 % ) ( - 3.3 % )
( 1.8 % )
( + 19.6% ) ( - 6.9%)
3,362.93,611.21,069.0863.1805.3625.3893.8867.5928.2921.5NetSales
12 Months12 Months4Q3Q2Q1Q4Q3Q2Q1QFY12FY11FY12FY11
Net Sales/Operating Income (Margin)Japan
Yen(billion)
Operating Income
Operating Margin (%)
4Q3QFY12FY12
1Q 2Q 12 MonthsFY11FY11
12 Months4Q3Q2Q1Q
<Increase Factors>-Increase in sales volume and model mix,-Decreased SG&A expenses, etc
<Decrease Factors>-Increased R&D expenses, etc
Yen(billion)
20
223.2
300.9
110.7
75.889.6
24.5 18.547.7
74.8 82.2
0
50
100
150
200
250
300
350
( 2.5 % )
( 6.8 % )
( 6.0 % )
( - 25.8%)( 7.3 % )
3,714.74,147.81,200.3986.2794.1733.9976.61,011.81,021.61,137.8NetSales
12 Months12 Months4Q3Q2Q1Q4Q3Q2Q1QFY12FY11FY12FY11
( + 22.9% ) ( - 10.4%)
( + 234.8% )
Net Sales/Operating Income (Margin)North America
Yen(billion)
Operating Income
Operating Margin (%)
4Q3QFY12FY12
1Q 2Q 12 MonthsFY11FY11
12 Months4Q3Q2Q1Q
<Increase Factors>-Increase in sales volume and model mix , etc
<Decrease Factors>-Increased SG&A expenses-Negative currency effects, etc
Yen(billion)
21
-12.1-10.2
4.0 - 3.0
-9.4 -1.7 -6.1
-4.0 -3.8
1.8
-15
-10
-5
0
5
10
15
20
25
30
( 1.1 % )
( - 0.9 % ) ( - 2.1 % )( - 1.5 % )
580.7699.2165.8119.4144.5150.9197.3150.7161.3189.8NetSales
12 Months12 Months4Q3Q2Q1Q4Q3Q2Q1QFY12FY11FY12FY11
( - 16.0% ) ( - 16.9%)
Europe Net Sales/Operating Income (Margin)
Yen(billion)
Operating Income
Operating Margin (%)
4Q3QFY12FY12
1Q 2Q 12 MonthsFY11FY11
12 Months4Q3Q2Q1Q
<Increase Factors>-Increase in sales volume and model mix, etc
Yen(billion)
22
76.8
150.6
44.438.3 35.7 32.1
25.1 21.8 13.3 16.50
50
100
150
( 4.2 % )
( 6.8 % )
( - 48.5% )
( 5.2 % )
( - 49.0% )
( 8.2 % )
1,490.41,841.1391.5317.6407.7373.4472.4445.5452.9470.2NetSales
12 Months12 Months4Q3Q2Q1Q4Q3Q2Q1QFY12FY11FY12FY11
( - 17.1% ) ( - 19.0%)
Asia Net Sales/Operating Income (Margin)
Yen(billion)
Operating Income
Operating Margin (%)
4Q3QFY12FY12
1Q 2Q 12 MonthsFY11FY11
12 Months4Q3Q2Q1Q
<Increase Factors>-Decreased SG&A expenses, etc
<Decrease Factors>-Decrease in sales volume and model mix-Negative currency effects, etc
Yen(billion)
23
5.6
12.5
23.0
15.713.115.620.420.2
69.5
56.9
0
10
20
30
40
50
60
70
( 2.6 % )
( 5.0 % )
( - 57.3% )
( 6.4 % )
( - 18.1% )( 7.1 % )
893.1982.0212.6206.1244.3229.9264.3238.8242.5236.3NetSales
12 Months12 Months4Q3Q2Q1Q4Q3Q2Q1QFY12FY11FY12FY11
( - 19.5% ) ( - 9.1%)
4Q3QFY12FY12
1Q 2Q 12 MonthsFY11FY11
12 Months4Q3Q2Q1Q
Net Sales/Operating Income (Margin)Other Regions
Yen(billion)
Operating Income
Operating Margin (%)
Yen(billion)
<Decrease Factors>-Decrease in sales volume and model mix-Negative currency effects, etc
24
100.4
139.7
22.915.5
33.235.6 35.643.4
25.0 28.6
87.9
22.1
111.1
14.827.5 29.5
21.534.4
19.529.3
0
20
40
60
80
100
120
140
160+ 8.2
( + 33.1 % )
- 39.3( - 28.2 % )
Change in Equity in income of affiliates
Total Asia
Yen(billion)
4Q3QFY12FY12
1Q 2Q 12 MonthsFY11FY11
12 Months4Q3Q2Q1Q
25
40.3
78.0 73.382.5 73.254.7
309.7
75.851.5
219.9
14.829.3 21.529.527.5 34.4
22.1
111.1
19.5
87.9
0
50
100
150
200
250
300
350
+ 1.9( + 10.1 % )
- 23.1( - 20.9 % )
44.051.5
4Q
45.4
54.73Q
62.5
73.31Q
FY12
34.1
40.32Q
FY12
262.0309.7
12 MonthsFY11
186.1219.912 Months
75.873.278.082.5OperatingIncome
FY11
66.5
4Q
60.264.171.1Net Income
3Q2Q1Q
Operating Income of Affiliates in Asia and Honda’s Equity in Income from Asia
Yen(billion)
Operating Income of Affiliates and Honda’s Equity in Income
Operating Income Equity in Income
Yen(billion)
4Q3QFY12FY12
1Q 2Q 12 MonthsFY11FY11
12 Months4Q3Q2Q1Q
Fiscal term of companies marked “*” differs from that of Honda Motor Co., Ltd.
Others 34 , Total 42 companies
As of the end of March 31, 2012Affiliates accounted for under the equity method in Asia
China Sundiro Honda Motorcycle Co., Ltd.*Wuyang-Honda Motors (Guangzhou) Co., Ltd.*
Indonesia P.T. Astra Honda Motor *Pakistan Atlas Honda Ltd. Thailand A.P. Honda Co., Ltd.
Motorcycle Business:China Guangqi Honda Automobile Co., Ltd.*
Dongfeng Honda Engine Co., Ltd.*Dongfeng Honda Automobile Co., Ltd.*
Automobile Business :
26
13.9Power Product & Other Businesses
311.3Total
0.1Financial Services Business
260.1Automobile Business
37.0Motorcycle Business
10.0Power Product & Other Businesses
406.5Total
0.3Financial Services Business
334.1Automobile Business
62.0MotorcycleBusiness
Excluding currency translation effects + 114.9 ( + 36.9 % )
+ 88.7
311.3+ 29.4
+ 0.1 - 3.3 - 19.6406.5
+ 95.2 ( + 30.6 % )
Consolidated Capital Expenditures <FY12 Twelve Months>
※ Capital expenditures in results aforementioned excludeinvestment in operating leases and intangible assets
MotorcycleBusiness
AutomobileBusiness
FinancialServicesBusiness
Power product&
Other BusinessesCurrency
Translation Effects
FY11 Twelve Months FY12 Twelve MonthsMarket average ratesUS$ 1= JPY 86Euro 1= JPY 113
Yen (billions) Yen (billions)
Market average rates US$ 1= JPY 79 (Yen up by 7 yen)Euro 1= JPY 109 (Yen up by 4 yen)
Yen (billion)
27
Change in the Disclosure of Unit Sales Information from Fiscal Year Ending March 31, 2013
“Honda Group Unit Sales” and “Consolidated Unit Sales”
2012年度以降の売上台数に係る
28
"Honda Group Unit Sales"
The total of unit sales of completed products of Honda, its consolidated subsidiaries and its affiliates accounted for under the equity method (Sum of ① and ②)
External Customers
②Finished products
③Production parts
Automobiles + Motorcycles
MotorcyclesAutomobiles
Automobiles Motorcycles
② Finished products
Power products
Motorcycles
Automobiles
*The photos are for the purpose of illustration only.
①Finished products
Honda+
Consolidated Subsidiaries
Equity method Affiliates
China – automobile:Guangqi Honda
Dongfeng Honda
China – motorcycle:Sundiro Honda
Wuyang-Honda
Asia – motorcycle:Astra HondaA.P. HondaAtlas Honda
29
The total of unit sales of completed products of Honda and its consolidated subsidiaries,not including parts for local production at Honda’s affiliates accounted for under the equity method (Excluding ③ from the current "Unit Sales“)
"Consolidated Unit Sales"
Honda+
Consolidated Subsidiaries
②Finished products
③Production parts
Automobiles + Motorcycles
MotorcyclesAutomobiles
Automobiles Motorcycles
Finished products
Power Products
Motorcycles
Automoboles
①Finished products
External Customers
Equity method Affiliates
China – automobile:Guangqi Honda
Dongfeng Honda
China – motorcycle:Sundiro Honda
Wuyang-Honda
Asia – motorcycle:Astra HondaA.P. HondaAtlas Honda
*The photos are for the purpose of illustration only.
30
0
2,000
4,000
6,000
8,000
0
1,000
2,000
3,000
4,000
0
5,000
10,000
15,000
20,000
220200198
12,412
2,031
15,061
235255210
13,820
2,080
16,600
588
1,323
158
837
3,108202
710
1,740
230
1,310
4,300310
5,819
1,121
392
2,314
520
1,472
6,300
1,150
355
2,520
605
1,670
+ 1,539( + 10.2 % )
+ 1,192( + 38.4 % )
+ 481( + 8.3 % )
Honda Group Unit SalesMotorcycles Automobiles Power Products
Unit (thousand)
Japan
Europe
OtherRegions
Asia
NorthAmerica
FY13Forecasts
FY13Forecasts
FY13Forecasts
FY12(Reference)
FY12(Reference)
FY12(Reference)
31
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Consolidated Unit Sales
0
3,000
6,000
9,000
12,000
6,300
1,150
355
2,520
605
1,670
+ 1,250( + 14.5 % )
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
235255210
7,120
2,080
9,900
220200198
6,001
2,031
8,650
580
1,323
158219
2,482202
700
1,740
230
560
3,540310
5,819
1,121
392
2,314
520
1,472
+ 1,058( + 42.6 % )
+ 481( + 8.3 % )
FY13Forecasts
FY13Forecasts
FY13Forecasts
Motorcycles Automobiles Power Products
Unit (thousand)
Japan
Europe
OtherRegions
Asia
NorthAmerica
FY12(Reference)
FY12(Reference)
FY12(Reference)
32
Change
+ 258.5
+ 19.5
+ 377.5
+ 388.6
+ 2,351.9
amount
470.0
120.0
635.0
620.0
10,300.0
FY13Forecasts
+ 19.5%100.4Equity in income of affiliates
+ 122.2%
+ 146.7%
+ 168.0%
+ 29.6%
%
211.4 Net income attributable to Honda Motor Co., Ltd.
257.4Income before income taxes
231.3Operating income
7,948.0Net sales & other operating revenue
FY12Results
+ 143.44260.78 117.34EPS attributable toHonda Motor Co., Ltd. (Yen)
105
80
Yen up by 3 yen
Yen down by 1 yen
108Euro
79 US Dollar
FY13 Financial Forecasts (Consolidated)Yen (billion)
Note : Shares which are based on calculation of EPS
approx.1,802,300,000 shares(weighted average number
of shares outstanding )
approx.1,802,299,559 shares
Average Rates (Yen)
(weighted average number of shares outstanding )
33
Income before Income taxes + 377.5 ( + 146.7 % )
257.4
635.0+ 476.8
+ 152.0 - 205.0
- 35.2± 0 - 8.0 - 3.0
Operating Income + 388.6 ( + 168.0 % )
* *
*
* The impact of the change in depreciation method which is anticipated to cause a decrease in depreciation expense by approximately JPY 40.0 billion in total, is included.
Forecast: Change in Income before Income TaxesYen (billion)
Other Income & Expenses
- 11.0
Revenue,model mix,
etc.
Increase in SG&A
Cost Reduction, etc.
Increasein R&D
Currency Effect Unrealized gainsand losses related toderivative
instruments
Others
Operating Income
231.3
FY12
Operating Income620.0
FY13Forecasts
34
+ 35.2
- 8.7
+ 173.5
Change
519.8
293.7
406.5
FY12Results
555.0
285.0
580.0
FY13Forecasts
R&D expenses
Depreciation and amortization
Capital Expenditures*
*
**
**
*
Yen(billion)
“Depreciation and amortization” in results and the forecast aforementioned exclude depreciation of investment in operating leases and amortization of intangible assets
Honda uses the straight-line method for calculating the forecasts for the depreciation of property, plant and equipment for the year ending March 31, 2013.
Forecast: Capital Expenditures, Depreciation, R&D Expenses
3535
Caution with Respect to Forward-Looking Statements:This slide contains forward-looking statements about the performance of Honda, which are based on management’s assumptions and beliefs taking into account information currently available to it. Therefore, please be advised that Honda’s actual results could differ materially from those described in these forward-looking statements as a result of numerous factors, including general economic conditions in Honda’s principal markets and foreign exchange rates between the Japanese yen and the U.S. dollar, the Euro and other major currencies, as well as other factors detailed from time to time.
Accounting standards: Our consolidated financial standards are prepared in conformity with U.S. generally accepted accounting principles.
Notice on the Factors for Increases and Decreases in Income:With respect to the discussion above of the change in operating income, management has identified the factors set forth below and used what it believes to be a reasonable method to analyze the respective changes in such factors. Each of these factors is explained below. Management has analyzed changes in these factors at the levels of the Company and its material consolidated subsidiaries.
(1)“Foreign currency effects” consist of translation adjustments, which come from the translation of the currency of foreign subsidiaries’ financial statements into Japanese Yen, and foreign currency adjustments, which result from foreign-currency-denominated sales, which, at the levels of the Company and those consolidated subsidiaries which have been analyzed, primarily relate to the following currencies: U.S. dollar, Canada dollar, Euro, GBP, BRL and Japanese Yen.
(2) With respect to “cost reduction and effects of raw material cost fluctuations”, management has analyzed cost reduction and effects of raw material cost fluctuations at the levels of the Company and its material foreign manufacturing subsidiaries in North America, Europe, Asia and other regions.
(3) With respect to “changes in net sales and model mix”, management has analyzed changes in sales volume and in the mix of product models sold in major markets which have resulted in increases/decreases in profit, as well as certain other reasons for increases/decreases in net sales and cost of sales.
(4) With respect to “selling, general and administrative expenses”, management has analyzed reasons for an increase/decrease in selling, general and administrative expenses from the previous fiscal year net of currency translation effects.
36
- 91.6- 28.2Currency effect associated with sales transaction
- 40.4- 8.6Currency effect from translation of foreign financial statements (impact on operating income)
- 132.0
- 18.0
- 73.6
- 3.5- 10.6
- 3.5- 55.8
FY1212 Months
Average Rates (Yen)
ChangeFY124Q
FY114Q
FY12 4Q
Yen up by 2 yen
8082- 11.8JPY / USDYen up by
9 yen104113- 1.9JPY / Euro
―――- 3.0JPY / Others
―――- 2.7Transactions between other currencies
- 19.5Difference of average rates(Impact on Operating income)
- 8.7Difference between transaction rates and average rates (Impact on Other income & expenses)
- 36.9Total
*1
*2
*3
-Currency Effects-(effects associated with sales transactions and translation effects) (Exhibit 1)
*1:Impact of YOY difference of FOREX to be used for booking revenue of foreign currency transactions
*2:Impact of YOY difference between average FOREXand hedge rates during the period
*3:Effect due to the difference of the rate used for translatingHonda’s overseas subsidiaries’ financial statements denominated in foreign currencies into Japanese yenwith the corresponding period of the fiscal year
Yen(billion)
37
+ 7.7
- 0.4
+ 8.4
- 0.2
FY11
12 Months
+ 1.8
+ 0.3
+ 13.9
- 12.4
FY12
- 5.9
+ 0.7
+ 5.4
- 12.2
Change
- 18.8
0
- 3.7
- 15.0
FY11
4Q
- 25.5
0
- 4.4
- 21.0
FY12
- 6.6
0
- 0.6
- 6.0
Change
Others
Total
Interest rate swap Currency swap
Foreign currencyForward
- Unrealized Gains and Losses Related to Derivative Instruments - (Exhibit 2)
Yen(billion)
38